Buy a VW Vento today but pay EMI after 1 year: How does this scheme work? We explain

Volkswagen has put out an interesting ad that’s getting a lot of people interested in the Vento C-Segment sedan. The ad looks like this, and is being distributed on Facebook.

A lot of people are asking us how this scheme actually works. We got in touch with a Volkswagen dealer in Pune, and found out everything there is to know about this scheme.

Here’s how it works.

First of all, to qualify for this scheme, you need to be eligible for a car loan. The banks that have tied up with the Volkswagen dealer will run a credit check on you, and figure out whether you’re eligible for a car loan.

Once you’re eligible for a car loan, you need to pay 20 % of the ex-showroom amount (minus discounts) of the car, and the RTO registration charges as down payment. The remaining 80 % of the car’s ex-showroom price will be financed by the bank on a 60 month loan tenure. For the first 12 months of the loan’s tenure, you don’t need to pay any EMI. The EMIs will start from the 13th month onward, and will carry on till the 60th month.

Here’s a real world example to help you understand better.

 

Let’s consider the Volkswagen Vento TSI Highline Plus, a car costs about 14.6 lakh rupees, on-road Pune. The ex-showroom price of the car is about 11.77 lakh rupees, and there’s a cash discount of 60,000 rupees on this car. So, effectively, you need to pay 20 % of 11.17 lakh rupees (after applying the cash discount), plus road tax (RTO) and other charges. The road tax and other RTO charges come up to about 2.35 lakh rupees in Pune. The total downpayment adds up to Rs. 4.58 lakhs (Rs. 2.23 lakhs + Rs. 2.35 lakhs).

The rest of the amount, which is 9.41 lakh rupees, will be financed by the bank that has tied up with the Volkswagen dealer for this specific offer. You will have to pay a monthly EMI of about 25,000 rupees for 48 months. Suppose you buy the car tomorrow through this scheme, you will have to pay the first EMI of 25,000 rupees in January 2019. But make sure that you’re eligible for a car loan (in other words, a clean CIBIL score), and have 4.58 lakh rupees ready for the down payment.